125 Tips for Cash Flow Part 2 — Market Selection, Deal Analysis, Drive-Bys, LOIs & Due Diligence

One property tax adjustment turned a 22% IRR into a negative 10%. That's what happens when you don't do your homework before you submit an offer.

In Part 2 of the 125 Tips series, Mark Kenney covers market selection, deal analysis, drive-by strategy, LOI submission, contracts, and due diligence — with the real errors and real examples that expose where investors get burned.

In this episode you will learn:

• Why city investment in a submarket matters less than developer investment — and the market characteristics Mark avoids entirely

• The $50M deal red flag: what happens when someone submits with no PM budget, no insurance, no equity, and three other deals open

• How one property tax adjustment flipped a positive 22% IRR to a negative 10% — without changing anything else

• Cap rates demystified: sub-market vs. in-place T12 vs. adjusted — and which one you're actually buying at

• The cash vs. accrual accounting distinction that can shift property value by millions — and why sellers use one and buyers assume the other

• Drive-by strategy, LOI submission rules, re-trade guidelines, and why Mark's team drilled the locks on 36 units during due diligence

This is Part 2 of a three-part series. Listen to Episode 132 first, then continue with Episode 134.

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